TransferWise isn’t an unheard name in the online money transfer market. The platform has made a name for itself within its competition for the high-quality services it provides with low prices and fast delivery. However, despite being in the industry for almost a decade, many users haven’t heard of the platform.
One of the main reasons why TransferWise hasn’t gained popularity through years of its services is because of user unawareness. Many users still trust the traditional methods of transferring money. While these methods are still reliable, they are usually costlier and may take several days for the transfer to complete. TransferWise, on the other hand, has a unique system for money transfers that is significantly better than most of the alternatives.
Another reason why users still don’t use the platform is due to the risks associated with using TransferWise. Most of these risks come as a result of the industry in which the company operates. Some, however, may come as a result of the platform being online. Either way, users should understand the risks of using TransferWise.
Five risks of using TransferWise
Given below are the top five risks of using TransferWise.
TransferWise is an online platform that depends on users to provide credentials to access their accounts. The platform allows users to use their Borderless account as an online wallet and keep their funds in it. Similarly, it helps businesses and even banks to create accounts and use the features of the platform. Due to the users’ money involved in TransferWise, hackers try to target these users to benefit off of it.
Users of TransferWise always face the risk of hacking attempts from unknown sources. The platform does have some security features that keep it safe from unauthorized third-party access. However, it still does not eliminate the risk.
2) Account problems
TransferWise has an anti-fraud system that keeps its users safe from any fraud attempts from third-parties. However, the system may sometimes result in false positives, which means even users that aren’t trying to fraud others may get caught up in the system. When this happens, the platform freezes or sometimes disables users’ accounts.
With TransferWise, users always face the possibility of frozen or disabled accounts. Once the platform disables their accounts, users can’t access any funds they have in their TransferWise account or use any of the platform’s features. For users that depend on the platform for their funds or other services, this may result in significant losses or problems.
3) Incomplete transfers
TransferWise allows users to transfer money to a bank account in 1-2 days. Sometimes, this process can take even shorter, usually hours or even minutes. However, in rare cases, it may result in incomplete transfers, which is a risk all users face. Incomplete transfers refer to transactions that do no go through, and the platform may show as complete.
Users have complained of getting a completed transfer message on the platform, even though the recipient hadn’t received the funds. While the users have not lost any of their funds, they had to go through the extra hassle of recovering those funds or waiting even longer to receive them.
4) Getting caught in regulations
TransferWise complies with rules and regulations in many countries, which make it a safe platform for governments. These may include laws, such as anti-money laundering, anti-terrorism, financial regulations, etc. Through all these compliances, the platform may also provide some additional security for its users. However, they may also result in users getting caught in the system and needing to provide extra proof.
TransferWise users always face the risk of the platform requiring proof for their transactions or other additional details. While these may not be a bad thing, for users that rely on the delivery speeds of the platform, it can be discouraging. Usually, users with high volume and high-value transactions get caught in this system.
5) Debit card risks
TransferWise provides users with a debit card, in association with MasterCard. Users can use this debit card to access their account funds directly. However, this also makes their accounts susceptible to any exploits that can occur through credit cards. For example, if the debit card falls into the wrong hands, the third-party can access the funds in the TransferWise account without restrictions.
TransferWise does provide a basic security check when it comes to card usage. However, users still face all the risks that come with the usage of credit or debit cards. For instance, they must face fraud risks when using the card.
TransferWise is an online money transfer platform that has been in the industry for a while. However, it has not attracted the same number of users as some traditional methods of money transfer. It may be due to the risks involved with using the platform. Given above are five of the top risks that users face when using TransferWise.